Rakuten invests in Lyft

Uber is considered as the cream of the crop among investors’ portfolios and the company has pretty much snagged the biggest tech funding deals in history. Since many major investors have already funded Uber, it seems that Lyft’s options for investors have become quite limited. One of the companies that came to Lyft’s aid is Japan’s biggest ecommerce company, Rakuten. Although majority of its investments and acquisitions have traditionally been in the ecommerce space, Rakuten paid $300 million for an 11.9% stake in the ride-sharing pioneer. New investor Fortress Investment Group was also involved in the fundraising round. The new investment values Lyft at $2.5 billion and brings its total funding to more than $850 million. Although Lyft’s valuation is way behind Uber’s $40 billion, the company has been growing 500% per year in both number of rides and revenue, according to its president John Zimmer. Now the big question is, after Rakuten, can Lyft attract other major investors to boost its fundraising so it can finally go head-to-head with Uber?

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